Stretch the brand through halos (the nature of sub-brands and their role in the halo effect of marketing strategy)

Article Type: Abstracts From: Strategic Direction, Volume 27, Issue 8

Southgate T. and Gadhia R.Admap, February 2011, Vol. 46, No. 2, Start page: 26, No. of pages: 2

Discusses the nature of sub-brands, which are defined as products or services that are associated with a parent brand but have a positioning or essence that make them unique from the parent brand. Explains that, while any diversification of a brand poses potential risk or reward for its owner, sub-brands can create significant long-term value, but can also upset or detract from the equity that the parent brand has developed. Stresses the vital importance of appreciating this “halo effect” in deciding how to extend, diversify, and manage a brand or product portfolio. Illustrates these points with particular reference to successful examples of the halo effect, including BMW, where both the marketing and brand management strategy of the parent substantially strengthened the sub-brand as a result. Concludes that, in the best examples of the halo effect in action, both the parent and the sub-brands are strengthened substantially as a result. Contributes to a series of articles in an issue of Admap magazine partly devoted to the theme of “brand architecture.”Article type: ViewpointISSN: 0001-8295Reference: 40AG236

Keywords: Brand management, Marketing planning, Marketing strategy, Marketing theory, Organizations, Strategic marketing